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Raja Simhan T.E.

CHENNAI, May 10

THE Madras Export Processing Zone (MEPZ) is likely to achieve an export turnover of Rs 1,000 crore by the fiscal year 2004-05.

For the fiscal ending March 31, 2003, it achieved a turnover of Rs 822 crore as against Rs 750 crore the previous year, said Ms Malini Shankar, Joint Development Commissioner of MEPZ. Garments, software and engineering products contributed over 50 per cent of export value, she said.

The export turnover from units functioning outside MEPZ in Tamil Nadu, Pondicherry and Andaman & Nicobar Islands was about Rs 4,500 crore compared to Rs 4,250 crore last year, and about Rs 2,500 crore a couple of years ago. Units in Tamil Nadu contributed about 97 per cent of exports, she said.

The zone caters to the needs of both units in the Special Economic Zone as well as of 100 per cent export-oriented units located in Tamil Nadu, Pondicherry and Andaman & Nicobar Islands. There are about 300 such export-oriented working units outside MEPZ, she said.

Talking to Business Line, Ms Shankar said Rs 1,000-crore export turnover by units in MEPZ was possible even as the top performers including Covansys, CG Igarshi, Grasilla, Venture Lighting, and Ambattur Clothing are expected to perform better in a couple of years. These firms are reworking internally and finding new buyers and reaching out new geographies. The top five units contribute about 55 per cent of MEPZ turnover; the rest of the revenue came from about 75 smaller units, she said.

Some of the new and smaller units inside MEPZ including Avalon Technologies and Urjitha Technologies have performed well despite a global slump. Starting with a few lakh of rupees about three years ago, Avalon reported an export turnover of around Rs 25 crore, while Urjitha reported about Rs 18 crore for 2002-03, she said.

According to Ms Shankar, after the Centre declared MEPZ as a special economic zone (SEZ) from January 1, 2003, more companies want to set up a unit inside MEPZ. In the last five months, the zone issued five new licences to various companies including AVT (leather division) and a Japanese firm, Anabond Taoka, the latter in the manufacturing of industrial adhesives, she said. Six more companies plan to set up units inside the campus, even as the TTK group is also in talks to set up a unit, she said.

The MEPZ is spread over an area of 262 acres (first phase 98 acres and the second 164 acres). There is no empty space today, said Ms Shankar. As part of infrastructure improvement, a dedicated water treatment plant is planned to treat Palar water being supplied to the zone. A waste-water recycling plant is also planned to make MEPZ a zero effluent area, she said.

Plans for OBU

THE MEPZ plans to have an offshore banking unit (OBU) inside its campus and was talking to a couple of large banks, according to Ms Malini Shankar, Joint Development Commissioner of MEPZ.

An OBU would be virtually foreign branches of Indian banks but located in India. They would also be exempted from the stipulations of cash reserve ratio (CRR) and statutory liquidity ratio (SLR) and would provide finances at international rates to SEZ units and developers. The OBUs would allow units in MEPZ deal in foreign exchange, she said.

The MEPZ also plans a container freight station inside its campus, and talks are going on with the Container Corporation of India to run the CFS, she said.

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